BEIJING (Reuters) – China on Thursday slammed a decision by the US government for telecom-equipment giant Huawei on a black list and said that it will take steps to protect the companies, in a further test of the tyres as well as the economic heavyweights clash over trade.
China is strongly against other countries imposing unilateral sanctions on Chinese entities, a Ministry of Commerce spokesman said that, despite the fact that the United States should avoid further damage of Sino-U.S. trade relations.
The precipitation of the Huawei came as US Secretary of finance Steven Mnuchin said that he would visit China soon for further negotiations. Hope on a deal at the end of their trade to the war in question after the world’s two largest economies raised rates on all other affairs of the past week.
The U.S. Department of Commerce said on Wednesday it is adding Huawei Technologies Co and 70 branches of the so-called “Entity List” in a move that a ban on the Chinese company from acquiring the components and technology of AMERICAN companies without prior US government approval.
President Donald Trump separately on Wednesday signed an executive order barring AMERICAN companies from the use of telecom equipment made by companies deemed to pose a national security risk.
The order is not specific to a country or company, but U.S. officials have previously labeled Huawei a “threat”, and urged allies not to use Huawei network equipment of the next generation 5G networks.
“China has stressed many times that the concept of national security should not be abused, and that it should not be used as a tool for trade protectionism,” Gao Feng, a spokesperson of the Chinese ministry of commerce, told reporters.
“China will take all necessary measures to resolutely protect the legitimate rights of Chinese companies.”
The U.S. Secretary of Commerce Wilbur Ross said Asset behind the decision to “prevent American technology is used by foreign entities in a way that potentially undermine U.S. national security or foreign policy interests.”
In response, Huawei, which denies its products pose a threat to safety, said it was “ready and willing to deal with the AMERICAN government, and come up with effective measures to ensure the security of the product.”
It said that the limit of the Huawei do business in the United States, “the limit of the AMERICAN inferior yet more expensive alternatives, which the US is lagging behind in 5G deployment, and, ultimately, prejudice to the interests of AMERICAN businesses and consumers.”
Putting restrictions on Huawei’s supply chain can also delay the purchasing of components and parts that are needed to help the Chinese telecom operators rolled out 5G in China, Jefferies wrote in a note, unless Beijing manages to negotiate with Washington to help Huawei from “the prison”.
“In the assumption that the U.S. ban on the export of Huawei remains unresolved for the next 12-24 months, we are very doubtful that China would stick to the timetable of the building, 5G aggressive,” the US brokerage wrote.
The sanctions on Huawei were also likely consequences outside of the company itself, the rattling of the global tech supply chain, analysts said.
China is also angry about Canada with the arrest of Huawei Chief Financial Officer Meng Wanzhou in December. Mix faces extradition to the United States on charges that they conspired to defraud global banks about Huawei’s relationship with a company that active in Iran.
They and the company denies the allegations.
Also on Thursday, China’s Ministry of Foreign affairs announced the formal arrest of two Canadian citizens who are held shortly after Mix’s arrest.
- Dutch spy agency investigates alleged Huawei ‘back door’: Volkskrant
- Macron says that it is not France in the aim to block Huawei
While Canada says China has no specific link between the arrest of the two men and Mix the arrest of experts and ex-diplomats say they have no doubt it is their business to press Canada.
Trump had softened his trade rhetoric on Tuesday and insisted talks had not collapsed. He also announced plans to meet Chinese President Xi Jinping at the G20 summit in Japan at the end of next month.
When asked about messages in the media that the two leaders to meet face to face to resolve the trade dispute, Gao said that those reports were not true.
He added that he has no information about the plans for a US trade delegation to China.
Ministry of foreign affairs spokesman Kang Lu, asked if China had invited the officials of the V. S. for more talks, said that China has always advocated resolving the dispute through dialogue.
“The negotiations and consultation, to have meaning, must be sincere,” Lu told reporters on a separate daily briefing.
“First, there must be mutual respect, equality and mutual benefit. Secondly, a word must be kept, and not whimsical.”
If the negotiations in the direction of solving the U.S.-China trade war to a halt last week, the United States increases the pressure by increasing the tariffs on a list of 200 billion dollars worth of Chinese imports to 25% from 10%.
China retaliated with higher tariffs on a revised list of $60 billion in AMERICAN products.
Trump has threatened to launch 25% of the rates at another $300 billion of Chinese goods.
“The rate hike by the United States will only lead to more problems to the talks,” Gao said.
“We urge the United States to cancel the wrong practice as soon as possible, to avoid greater losses for the Chinese and American businesses and consumers, and the cause of a ‘recession’ impact on the global economy.”
Three differences remain between the two countries, according to China.
China is of the opinion rates were the genesis of the trade in dispute, and that all rates must be eliminated to come to a deal.
The second problem centres on the extra volume of AMERICAN goods that China is willing to buy, and Vice-Premier Liu He, China’s lead trade negotiator, said last week, without giving details.
Huawei smartphones are seen displayed at a shopping mall in Shanghai, China-May 16, 2019. REUTERS/Aly Song
The third is about how balanced the text of the draft agreement on the trade deal should be, ” he said.
“To reach any agreement, China’s three main concerns must be properly resolved,” Gao said.
Reporting by Yawen Chen and Se-Young Lee; Additional reporting by Michael Martina; Writing by Ryan Woo; Editing by Simon Cameron-Moore & Kim Coghill